AB 1734 and SB 269 Guidance: Identical Ownership of Multiple Manufacturer Licenses for a Single Premises

Pursuant to AB 1734 (Bennett, Chapter 175, Statutes of 2022), ABC licensees who hold a beer manufacturer’s license and a winegrower’s license that are under identical ownership were authorized beginning January 1, 2023 to hold both licenses for a single premises where alcoholic beverages allowed under those license types may, without separation, be sold or consumed. The licensee must still have a designated area on the premises where retail sales or consumption occurs but is not required to separate beer and wine sales or beer and wine consumption. In order to exercise the privileges established by the bill, both licenses must be maintained under identical ownership. Identical ownership means the entity listed on the licenses must be identical in all respects, and not just the same individuals in control of both licenses. Further, the manufacturer licenses for the single premises must be either both master licenses or both branch offices and may not be a combination of a master license and a branch office. If the premises involves overlapping branch offices, alcoholic beverage sales are limited only to those produced by the licensee.

There are distinct privileges that vary between beer and wine manufacturers. This new law does not enable a licensee to bypass statutory or regulatory requirements or restrictions applicable to their beer manufacturer or winegrower license simply by overlapping the premises with the other type of manufacturer’s license. For example, limits applicable to the number of bona fide eating places a winery may operate remain applicable. As expressly provided in the bill, it is not intended to allow a licensee to exercise any license privileges, or to hold licenses alone or in combination, not otherwise authorized by the ABC Act.

Update: SB 269(Laird, Chapter 176, Statutes of 2023) was recently enacted and will take effect January 1, 2024. This bill adds the brandy manufacturer and craft distilled spirits manufacturer license types to the single-premises authorizations established by AB 1734. In practice, this means a beer manufacturer’s license, a winegrower’s license, a craft distiller’s license, or a brandy manufacturer’s license, that are held in any combination and under identical ownership, may overlap at the same premises without necessitating separate sales and consumption areas. If one of the manufacturer’s licenses for the single premises is a craft distilled spirits manufacturer, then the manufacturer’s licenses for the single premises must all be master licenses and not a combination of a master license and a branch office. This limitation was incorporated to reconcile the differing privileges that exist among manufacturer license types. Work with your local ABC district office to license a single premises with multiple manufacturer license types and exercise this authorization.